Queen’s PhD candidate and JDI Student Fellow, Jenny Watt, discusses research presented at the Joint Bank of Canada-John Deutsch Institute Workshop on Financial Intermediation and Regulation. 

By Jenny Watt, JDI Fellow

Andrea Pozzi of the Einaudi Institute for Economics and Finance recently presented research on the consequences of financial illiteracy on mortgage rates. Using data containing 90% of Italian mortgages, he and his co-authors show that not only do consumers who are susceptible to bad advice from banks pay higher rates—their presence in the market causes higher rates for all consumers.Read More »